2018-00469
Federal Register, Volume 83 Issue 9 (Friday, January 12, 2018)
[Federal Register Volume 83, Number 9 (Friday, January 12, 2018)]
[Notices]
[Pages 1609-1611]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-00469]
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COMMODITY FUTURES TRADING COMMISSION
Agency Information Collection Activities: Notice of Intent To
Revise Collection Numbers 3038-0052 and 3038-0074, Core Principles and
Other Requirements for Designated Contract Markets, and Core Principles
and Other Requirements for Swap Execution Facilities
AGENCY: Commodity Futures Trading Commission.
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ACTION: Notice.
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SUMMARY: The Commodity Futures Trading Commission (``CFTC'' or
``Commission'') is announcing an opportunity for public comment on the
proposed revision of two collections of certain information by the
agency. Under the Paperwork Reduction Act (``PRA''), Federal agencies
are required to publish notice in the Federal Register concerning each
proposed collection of information, including each proposed extension
of an existing collection of information, and to allow 60 days for
public comment. This notice solicits comments, as described below, on
the proposed Information Collection Requests (``ICR'') titled: OMB
Control Number 3038-0074 and Part 38, Relating to Core Principles and
Other Requirements for Designated Contract Markets; and OMB Control
Number 3038-0052 and Part 37, Relating to Core Principles and Other
Requirements for Swap Execution Facilities. This notice also solicits
comments on the collection of information mandated by the Commission
regulation on Contents of Notice of Disciplinary or Access Denial
Action. The collection of information burden associated with that
regulation belongs to OMB Control Nos. 3038-0052 and 3038-0074.
DATES: Comments must be submitted on or before March 13, 2018.
ADDRESSES: You may submit comments, identified by OMB Control Nos.
3038-0052 and 3038-0074 by any of the following methods:
CFTC website: https://comments.cftc.gov. Follow the
instructions for submitting comments through the Comments Online
process on the website.
Mail: Christopher Kirkpatrick, Secretary of the
Commission, Commodity Futures Trading Commission, Three Lafayette
Centre, 1155 21st Street NW, Washington, DC 20581.
Hand Delivery/Courier: Same as Mail, above.
Federal eRulemaking Portal: http://www.regulations.gov.
Follow the instructions for submitting comments.
Please submit your comments using only one method.
FOR FURTHER INFORMATION CONTACT: David Steinberg, Associate Director,
Division of Market Oversight, Commodity Futures Trading Commission,
(202) 418-5102; email: [email protected].
SUPPLEMENTARY INFORMATION: Under the PRA, Federal agencies must obtain
approval from the Office of Management and Budget (``OMB'') for each
collection of information they conduct or sponsor. ``Collection of
Information'' is defined in 44 U.S.C. 3502(3) and 5 CFR 1320.3 and
includes agency requests or requirements that members of the public
submit reports, keep records, or provide information to a third party.
Section 3506(c)(2)(A) of the PRA, 44 U.S.C. 3506(c)(2)(A), requires
Federal agencies to provide a 60-day notice in the Federal Register
concerning each proposed collection of information, including each
proposed extension of an existing collection of information, before
submitting the collection to OMB for approval. To comply with this
requirement, the CFTC is publishing notice of the proposed amendments
to the collections of information listed below. An agency may not
conduct or sponsor, and a person is not required to respond to, a
collection of information unless it displays a currently valid OMB
control number.
Title: Core Principles and Other Requirements for Designated
Contract Markets (OMB Control No. 3038-0052), and Core Principles and
Other Requirements for Swap Execution Facilities (OMB Control No. 3038-
0074). This is a request for an extension of currently approved
information collections.
Abstract: The regulations governing designated contract markets
(``DCMs'') were adopted pursuant to the requirements of the Commodity
Futures Modernization Act of 2000 (``CFMA'').\1\ Part 38 of the
Commission's regulations governs the activities of DCMs. The
information collected pursuant to part 38 is necessary for the
Commission to evaluate whether entities operating as, or applying to
become DCMs, comply with the part 38 requirements including 23 core
principles.
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\1\ 7 U.S.C. 1 et seq.
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In June 2012, the Commission implemented core principles and other
requirements for DCMs (``DCM Final Rules'').\2\ The Commission stated
in the DCM Final Rules that 18 DCMs were registered with the
Commission.\3\ However, since publication of the DCM Final Rules, the
number of DCMs registered with the Commission has decreased from 18 to
15. Accordingly, the Commission is revising the below burden statement
from the DCM Final Rules to account for the decrease in the number of
registered DCMs.
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\2\ 77 FR 36612 (June 19, 2012).
\3\ Id. at 36663.
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Title VII of the Dodd-Frank Wall Street Reform and Consumer
Protection Act (``Dodd-Frank Act'') added new section 5h to the
Commodity Exchange Act (``CEA'') to impose requirements concerning the
registration and operation of swap execution facilities (``SEFs''),
which the Commission has incorporated in part 37 of its regulations.
These information collections are needed for the Commission to ensure
that SEFs comply with these requirements. Among other requirements,
part 37 of the Commission's regulations imposes SEF registration
requirements for a trading platform or system, obligates SEFs to
provide transaction confirmations to swap counterparties, and requires
SEFs to comply with 15 core principles.
In September 2016, the Commission published a 30-Day Notice of
Intent to Renew Collection 3038-0074 (30-Day Renewal Notice) and stated
that 23 SEFs were registered with the Commission.\4\ However, since
publication of the 30-Day Renewal Notice, the Commission has granted
permanent registration to two additional SEFs, for a total of 25
registered SEFs. Therefore, the Commission is revising the below burden
statement from the 30-Day Renewal Notice to account for the increase in
the number of registered SEFs.
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\4\ 81 FR 65630 (Sept. 23, 2016).
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In a separate document published elsewhere in this issue of the
Federal Register, the Commission adopted regulation 9.11(b)(3)(ii)
requiring a DCM or SEF (collectively, ``exchange'') to include two
additional elements in the disciplinary or access denial notice action
provided to the National Futures Association. First, an exchange must
include the type of product (as applicable) involved in the adverse
action.\5\ Requiring an exchange to provide this information in the
disciplinary or access denial notice will provide the Commission,
market participants, the public, and other exchanges with greater
transparency concerning where market abuses originate and whether the
abuses are concentrated among certain product types. Second, an
exchange must indicate in its notice of disciplinary or access denial
actions whether the violation underlying the notice resulted in
financial harm to any customers. This requirement codifies the
clarification contained in an advisory previously issued by the
Commission (``Part 9 Advisory'').\6\ The Commission believes
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that the inclusion of customer harm is essential because it cannot
effectively perform its regulatory and oversight functions without
knowledge of those instances in which brokers violate their fiduciary
duty to customers by taking advantage of customer orders and engaging
in fraudulent activity. The collections of information are mandatory.
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\5\ For example, a product trading on a designated contract
market might be specified as a July 2016 Eurodollar future; while a
product trading on a swap execution facility may be a CDX North
American High Yield Series 26 5 year.
\6\ The Part 9 Advisory permitted an exchange to file
disciplinary or access denial notices with the Commission or the
National Futures Association. 64 FR 39915 (July 23, 1999).
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With respect to the collection of information, the CFTC invites
comments on:
Whether the proposed collection of information is
necessary for the proper performance of the functions of the
Commission, including whether the information will have a practical
use;
The accuracy of the Commission's estimate of the burden of
the proposed collection of information, including the validity of the
methodology and assumptions used;
Ways to enhance the quality, usefulness, and clarity of
the information to be collected; and
Ways to minimize the burden of collection of information
on those who are to respond, including through the use of appropriate
automated electronic, mechanical, or other technological collection
techniques or other forms of information technology; e.g., permitting
electronic submission of responses.
All comments must be submitted in English, or if not, accompanied
by an English translation. Comments will be posted as received to
http://www.cftc.gov. You should submit only information that you wish
to make available publicly. If you wish the Commission to consider
information that you believe is exempt from disclosure under the
Freedom of Information Act, a petition for confidential treatment of
the exempt information may be submitted according to the procedures
established in Sec. 145.9 of the Commission's regulations.\7\
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\7\ 17 CFR 145.9.
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The Commission reserves the right, but shall have no obligation, to
review, pre-screen, filter, redact, refuse or remove any or all of your
submission from http://www.cftc.gov that it may deem to be
inappropriate for publication, such as obscene language. All
submissions that have been redacted or removed that contain comments on
the merits of the ICR will be retained in the public comment file and
will be considered as required under the Administrative Procedure Act
and other applicable laws, and may be accessible under the Freedom of
Information Act.
Burden Statement: The Commission believes that the additional
burden for an exchange to add the two additional elements in the
contents of the disciplinary or access denial notice is de minimis.\8\
Accordingly, the Commission is maintaining its current estimate of the
burden for both collections as result of these reporting requirements.
However, the Commission is amending its estimates for the collections
to account for the change in the number of DCMs and SEFs currently
registered with the Commission. The current respondent burden for these
collections are estimated to be as follows:
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\8\ The Commission stated in the Notice of Proposed Rulemaking
that the burden associated with Commission regulation 9.11(b)(3)(ii)
requiring an exchange to specify the product involved in the
disciplinary or access denial action would be de minimis. 82 FR 7745
(Jan. 23, 2017). The Commission did not receive any comments
regarding this determination. The Commission estimates that it will
take an exchange just a few seconds to add the product involved in
the adverse action and whether the violation underlying the notice
resulted in financial harm to any customers.
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OMB Control No. 3038-0052 (Core Principles and Other
Requirements for Designated Contract Markets).
Number of Respondents: 15.
Estimated Annual Burden Hours per Respondent: 490.5.
Estimated Total Burden Hours on Respondents: 7,357.5.
Frequency of Collection: As applicable.
OMB Control No. 3038-0074 (Core Principles and Other
Requirements for Swap Execution Facilities).
Number of Respondents: 25.
Estimated Annual Burden Hours per Respondent: 1,000.
Estimated Total Burden Hours on Respondents: 25,000.
Frequency of Collection: As applicable.
The regulations require no new startup or operations and
maintenance costs.
(Authority 44 U.S.C. 3501 et seq.)
Dated: January 9, 2018.
Christopher Kirkpatrick,
Secretary of the Commission.
[FR Doc. 2018-00469 Filed 1-11-18; 8:45 am]
BILLING CODE 6351-01-P
Last Updated: January 12, 2018